We walk to Morro Bay, about 5.5 miles to the south at least once a week when we stay here. We kayak and surf as much as we can. We walk 1 mile to the north to downtown Cayucos and hang out at Cayucos Coffee in the morning with the locals. Great dining at Cafe Della Via The Hidden Kitchen, right down town.
On a practical side, being right on the beach and having the private beach access with a great cove at the foot of the steps is a huge bonus. Cuts way down on the logistical issues of packing for beach activities! Hot water outside shower was probably one of the 'smartest' things we added!